US-Iran war updates: Chris Bowen cuts fuel stock obligations for diesel and petrol as supply concerns grow

Australia has now ordered all non-essential officials and their families from both Israel and the United Arab Emirates to leave the Middle East as the US-Israel-Iran war escalates.

The departure order marks a dramatic shift in the situation with Dubai, Abu Dhabi and Tel Aviv typically considered high-tier, generally safe diplomatic postings for Australian officials.

It comes after Australia has called for all expats living and working in the Middle East to leave the region with fears commercial flights will “dry up”.

“If you can secure a seat on a commercial flight, you should take it,” Foreign Minister Penny Wong said in a direct message to expats.

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Energy Minister Chris Bowen has announced Australia will adjust the “minimum stock obligation for diesel and fuel” to help companies better handle and manage their supplies as concerns grow over what he has described as a “crisis” in the Middle East.

Mr Bowen says the minimum levels for stockpiles of diesel will reduce from 2.7 billion litres to 2.2 billion litres, and from a billion litres to 700 million litres for petrol, in round terms.

“This will enable fuel companies to more flexibly manage their supply chain, (but) this fuel will not be released immediately,” Mr Bowen told reporters in Sydney following a meeting of the Cabinet’s National Security Committee.

“I will be having conversations, I have had conversations over the last 24 hours, and we’ll have more with the fuel companies about ensuring that this flows to regional Australia,” he added.

Pressed on whether Australia could run out of fuel, Mr Bowen insisted we are “nowhere near that”.

The Israeli Defence Force says it has killed a senior Hezbollah figure during overnight strikes in southern Lebanon as tensions with the Iran-aligned group continue to escalate.

In a post on X on Friday morning, the IDF said it had “eliminated” Ali Muslim Tabaja, describing him as a senior commander linked to Iran’s Imam Hossein Division. The Israeli military said three other Hezbollah officials were also killed in the operation.

The IDF said it also targeted what it described as Hezbollah command centres in Beirut and southern Lebanon.

“Hezbollah command centres in Beirut and southern Lebanon” were struck because they were being “used to advance terrorist attacks against Israeli civilians,” the military said.

“Prior to the strikes, measures were taken to mitigate civilian harm.”

The strikes come as Israeli Prime Minister Benjamin Netanyahu has warned the military will continue carrying out attacks against Hezbollah.

Energy prices surged this morning as the outlook for oil supplies from the Middle East worsened, sending US stocks down.

The Brent Crude international benchmark for oil hit $US101.70 a barrel as Iran extended attacks on shipping in the Strait of Hormuz and ports in the Persian Gulf. US West Texas Intermediate (WTI) oil fetched $US96.50 a barrel.

“The conflict has now moved beyond a short-lived geopolitical shock and into a phase where supply losses are increasingly structural rather than transient,” said ANZ Bank’s economics team. “To date, we think markets are under-pricing the likely duration of the disruption and the risk of compounding supply losses.”

Shares in ASX-listed oil and gas supply businesses Woodside and Santos have both jumped more than 10 per cent over the past month in response to higher energy prices. The S&P/ASX 200 is down 3.5 per cent over the past week.

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A senior minister has failed to say whether Australia will “run out of fuel” as the war in Iran pushes oil prices back above $US100 per barrel.

Industry, motorists and the opposition have hounded the Albanese government all week amid reports of fuel shortages in rural and regional areas, with the Royal Automobile Association of South Australia putting the average price for diesel in that state at a record high of $2.46 per litre.

The federal government has responded by blaming the shortages on panic buying and temporarily lowering fuel quality standards to get more petrol and diesel flowing to supply-stricken service stations.

But the question of whether the country could exhaust its fuel stocks has remained unanswered despite the opposition peppering both Anthony Albanese and Energy Minister Chris Bowen during parliamentary question time.

It was put to Health Minister Mark Butler when he fronted Seven’s Sunrise on Friday, with host Natalie Barr asking point blank: “Will Australians run out of fuel?”

Mr Butler was unable to say but did boast about Labor’s efforts to lift fuel reserves.

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The US Central Command (CENTCOM) has confirmed a KC-135 refuelling aircraft has crashed in western Iraq during Operation Epic Fury.

In a statement posted on X, CENTCOM said two aircraft were involved in the incident, with one going down while the other landed safely.

“The incident occurred in friendly airspace during Operation Epic Fury, and rescue efforts are ongoing,” the command said.

“This was not due to hostile fire or friendly fire.”

CENTCOM said more details would be released as rescue operations continued.

“More information will be made available as the situation develops. We ask for continued patience to gather additional details and provide clarity for the families of service members.”

The White House has sparked outrage online after posting a video that appeared to liken US drone strikes on Iranian targets to a game of Wii Sports.

The clip, shared on the official White House X account, stitches together footage of Nintendo Wii gameplay with real-world images of strikes hitting Iranian trucks, buildings and aircraft amid the escalating conflict.

The video quickly drew a wave of criticism across social media, with many users condemning what they described as a flippant tone in a post involving real military strikes.

Several commenters said the video appeared to treat the attacks like a video game.

“You do realise that this is probably footage of people dying?” one user asked.

The post triggered anger online, with critics accusing the White House of trivialising the violence of war by packaging the strikes in a format resembling a video game highlight reel.

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Israeli air strikes have hit a building in the heart of Beirut and Israel has ordered residents out of another swathe of southern Lebanon, intensifying its offensive against the Iran-aligned Hezbollah group.

The air strike at 5.30pm hit a building in the Bachoura neighbourhood, about 1km from the Lebanese government’s Grand Serail headquarters in downtown Beirut.

Before the strike, the Israeli military issued a warning telling residents they were near a Hezbollah facility against which it intended to strike.

Israel launched an air and ground offensive last week against Hezbollah, which launched attacks at Israel on March 2 that it said aimed to avenge the killing of Iran’s supreme leader at the start of the US-Israeli war on Iran.

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Australia has ordered all non-essential officials to leave Israel and the United Arab Emirates two weeks after the US and Israel’s war on Iran engulfed the Middle East.

Foreign Minister Penny Wong said staff were directed to leave “due to the deteriorating security situation”.

“Essential Australian officials will remain in-country to support Australians who need it,” she said in a statement posted on social media on Thursday night.

“We continue to advise Australians not to travel to Israel and the UAE.

“We urge you to leave the Middle East if you can and if it’s safe to do so.”

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The Australian government has temporarily lowered fuel standards to boost supply as concerns grow about global oil shortages linked to the escalating war in the Middle East.

Under the move, about 100 million litres of additional fuel will be released into the domestic market over the next 60 days. The fuel will be produced at an Ampol refinery in Queensland, where production normally serves export markets with lower fuel quality standards.

The extra supply will be made by allowing a higher level of sulphur in petrol than typically permitted under Australia’s fuel regulations.

New fuel standards introduced late last year limited sulphur in petrol to 10 parts per million, part of a broader effort to improve petrol quality nationwide. Under the temporary change, the sulphur limit will rise to 50 parts per million.

Climate Change and Energy Minister Chris Bowen said the move was designed to ease pressure on supply chains disrupted by rising global demand.

“While Australian fuel consumption has not changed, this will help relieve pressure on distribution chains disrupted by elevated demand,” Mr Bowen said.

“The government has been unequivocal – this additional supply must help the people who need it, including farmers, fishers and regional communities.”

The Queensland refinery producing the fuel is typically used to manufacture petrol for overseas markets where lower fuel standards apply.